Bitcoin Mining Giants Invest $2 Billion in BTC
During a recent market dip, U.S. publicly listed Bitcoin mining companies, Marathon Digital Holdings (MARA) and Hut 8 (HUT), made billion-dollar investments in BTC. On December 19, 2024, MARA Holdings and Hut 8 announced on X (formerly Twitter) that they had purchased 15,574 BTC worth $1.53 billion and 990 BTC worth $100 million, respectively.
MARA Holdings acquired their Bitcoin at an average price of $98,529 per BTC, while Hut 8 bought theirs at an average price of $101,710 per BTC.
MARA raised $1.925 billion through a 0% convertible note to fund the significant BTC purchase. With this latest acquisition, the company now holds 44,394 BTC, valued at around $4.45 billion. MARA has achieved an impressive BTC yield of 22.5% quarter-to-date (QTD) and 60.9% year-to-date (YTD).
Hut 8 now has a strategic Bitcoin reserve exceeding 10,000 BTC, worth over $1 billion following the recent purchase.
The purchases by these mining giants occurred during a period when the BTC price had dropped by over 5%. This buying activity has pushed the BTC price back above the $100,000 mark.
BTC is currently trading near $102,390, with a 1.56% price decline in the past 24 hours. The trading volume has increased by 25%, indicating heightened participation from traders and investors.
U.S. publicly listed firms like MicroStrategy and Semler Scientific have previously made significant BTC purchases, reflecting the growing adoption and interest in Bitcoin. The ongoing accumulations could potentially drive the BTC price higher in the near future.